Pound Sterling flattens against USD as investors seek fresh cues on Trump’s tariff policies
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The Pound Sterling stabilizes around 1.2600 against the US Dollar as investors wait for more developments in President Trump’s international policies. The FOMC minutes showed on Wednesday that officials are worried about deepening upside risks to inflation. Investors await the UK Retail Sales report for January and the preliminary S&P Global UK/US PMI data for February, scheduled for Friday. The Pound Sterling (GBP) trades in a tight range around 1.2600 against the US Dollar (USD) in Thursday’s European session. The GBP/USD pair consolidates as investors seek more development in United States (US) President Donald Trump’s tariff agenda and US-Russia peace talks on Ukraine. On Wednesday, Donald Trump announced that a trade deal with China is “possible”. His comments were optimistic even though he announced 10% tariffs on all imports from the Asian country earlier this month. On Tuesday, Trump also announced that he is planning to impose 25% tariffs on imports of foreign cars, pharmaceuticals and semiconductors. On the geopolitical front, President Trump has confirmed that he will hold more talks on a Russia-Ukraine peace deal after discussing the issue with Russian diplomats in Saudi Arabia without including Ukraine and Europe. However, Ukraine has said that it won’t agree to a deal that would be made on its behalf. Meanwhile, the outlook for the US Dollar seems upbeat as Federal Open Market Committee (FOMC) minutes for the January meeting showed on Wednesday that officials are expected to keep interest rates in the current range of 4.25%-4.50% for longer. Fed policymakers were more concerned about the upside risks to inflation due to Trump’s potential tariff policies than risks to the labor market. The FOMC Minutes also indicated that business owners plan to pass on the impact of higher input costs to consumers. Even though tariffs on critical imports would boost local…
Filed under: News - @ February 20, 2025 8:22 am